i appreciate your approach and your channel in general. that said, one needs to take a very different approach to this. it is not correct to define rolex as a 'watch brand' - it is a 'luxury good' through and through, and it is in this sphere we need to look for the true competitors. for the typical rolex buyer, you will find the substitutes are more likely to be a purchase from louis vuitton, fine wine or a luxury holiday rather than a watch from another brand. (cartier would be an alternative for many female rolex buyers, as cartier is also a true luxury brand, with a predominantly female identity.) the other watch manufacturers could be considered mainly 'watch brands' rather than true 'luxury brands' with some exceptions of course (patek philippe most notably...). our conclusions are the same but our ways of getting there are quite different!
I’d put it slightly differently - Rolex has surpassed their competition just like Apple and are now an aspirational brand. The ranking of their products is secondary - the iPhone routinely trails the other smartphone makers, sometimes not adding features the others have had for many years; the public doesn’t care.
The numbers don't lie as much as some people would like you to think otherwise! Love the way this economist explains things, wish I had had him as a prof. in university decades ago.
Great analysis. Obviously Cartier does not have the product line to compete with Rolex; not a sports brand. Then add in the non-circular dials. Tag and Breitling just don’t have the marketing might to compete. 0:02 Something to think about: how much in sales does Tudor lose because watch lovers won’t even consider the brand because of their anger at Rolex wait lists? I held off for that reason - then the BB Pro dropped at Watches & Wonders and I decided to get over my issues with the parent company. This Monday I just picked up my 4th; the new Coke GMT.
I like the structured approach, but the time period analysed is an anomaly. Rolex attracted many people looking to invest in luxury goods, the same as range rovers and porches in the same time period. Substitution as a concept became irrelevant as Rolex became little more than a physical NFT. To truly understand this, analysis pre the covid bump, or post would make more sense. At no other time in Rolex history have prices risen so much, and they have been in decline for 18 months.
The Rolex brand pull is undoubtably strong. Especially since demand is higher than supply. If you analyzed Patek Philippe or Audemars Piguet in this discussion, would you get the same result?
This data can also be used to challenge people who claim that you only buy Omega if you can't obtain or afford a Rolex. I recently ordered an Aqua Terra (teak, not shades) because I wanted an Omega. Cartier is in its own lane. Their design language is very distinctive, and while their prices are often steep for what you get (a quartz Tank is essentially a luxury Casio), they make attractive watches like the Santos that really function as jewellery first and watches second.
I don't think any company can become any time soon such a widely recognizable status symbol to be a real alternative. They probably helped, but if Omega hadn't after Bond movies, I don't know what could. And Rolex catchy name probably also helped. Nice, short, easy to remember and say in many languages. If I tried to say full JLC or BP people might worry it is a stroke.
Rolex has the $9k to $20k market locked up. No one competes on that pricing. Above $20k you get Patek etc.
Was waiting for you to analyze AP, VC, and Patek
I might do that. Something very odd is happening with VC.
@mywatchjourney6579 please do that. Fell in love with the brand after I bought a 1995 VC.
i appreciate your approach and your channel in general. that said, one needs to take a very different approach to this. it is not correct to define rolex as a 'watch brand' - it is a 'luxury good' through and through, and it is in this sphere we need to look for the true competitors. for the typical rolex buyer, you will find the substitutes are more likely to be a purchase from louis vuitton, fine wine or a luxury holiday rather than a watch from another brand. (cartier would be an alternative for many female rolex buyers, as cartier is also a true luxury brand, with a predominantly female identity.) the other watch manufacturers could be considered mainly 'watch brands' rather than true 'luxury brands' with some exceptions of course (patek philippe most notably...). our conclusions are the same but our ways of getting there are quite different!
I find luxury too broad a category. The substitution effect usually takes place between functionally same products.
I’d put it slightly differently - Rolex has surpassed their competition just like Apple and are now an aspirational brand. The ranking of their products is secondary - the iPhone routinely trails the other smartphone makers, sometimes not adding features the others have had for many years; the public doesn’t care.
The numbers don't lie as much as some people would like you to think otherwise! Love the way this economist explains things, wish I had had him as a prof. in university decades ago.
Thank you
Great analysis. Obviously Cartier does not have the product line to compete with Rolex; not a sports brand. Then add in the non-circular dials. Tag and Breitling just don’t have the marketing might to compete. 0:02
Something to think about: how much in sales does Tudor lose because watch lovers won’t even consider the brand because of their anger at Rolex wait lists? I held off for that reason - then the BB Pro dropped at Watches & Wonders and I decided to get over my issues with the parent company. This Monday I just picked up my 4th; the new Coke GMT.
It's clear, the Rolex association is doing nothing for Tudor. No boost at all.
Another terrific video!
Wow, thanks!
I like the structured approach, but the time period analysed is an anomaly. Rolex attracted many people looking to invest in luxury goods, the same as range rovers and porches in the same time period. Substitution as a concept became irrelevant as Rolex became little more than a physical NFT. To truly understand this, analysis pre the covid bump, or post would make more sense. At no other time in Rolex history have prices risen so much, and they have been in decline for 18 months.
It's precisely because it's an anomaly that it's a good test. That spike should have moved people even more. But it didn't.
The Rolex brand pull is undoubtably strong. Especially since demand is higher than supply. If you analyzed Patek Philippe or Audemars Piguet in this discussion, would you get the same result?
No, their demand characteristics would likely be diff. I got another request to do an analysis on those brands, so I might do that soon.
This data can also be used to challenge people who claim that you only buy Omega if you can't obtain or afford a Rolex. I recently ordered an Aqua Terra (teak, not shades) because I wanted an Omega.
Cartier is in its own lane. Their design language is very distinctive, and while their prices are often steep for what you get (a quartz Tank is essentially a luxury Casio), they make attractive watches like the Santos that really function as jewellery first and watches second.
Definitely Cartier is a separate world for buyers. Agreed on the design language. The mass market does not consider it a Rolex alternative in any way.
I don't think any company can become any time soon such a widely recognizable status symbol to be a real alternative. They probably helped, but if Omega hadn't after Bond movies, I don't know what could.
And Rolex catchy name probably also helped. Nice, short, easy to remember and say in many languages. If I tried to say full JLC or BP people might worry it is a stroke.
You're funny dude, but it's true
I'm not a Rolex fan, but numbers don't lie
As watch collectors, in our gut we know this is true.
Tudor is way overrated
Omega is the only one that can beat Rolex fair and square.
Cartier is more s jewel
I think Tudor is a quality brand, but the market is down on them. I analyzed it in my Tudor video.
@@mywatchjourney6579 QC is bad for Tudor.
Tudor is Rolex!
Nop in the gray market rol3x is geting down
That is true. But Rolex still has more price appreciation than the other brands.
Thank you. I really appreciate your videos. T)
Thanks for watching!
Rolex brand is just engraved in the luxury market. It’s a very strong brand and great quality.